Faiza Tehseen

Pakistan is continuously losing a host of precious subsidiary elements/by-products which are part of the principal minerals that are exported to different countries, reports WealthPK. The major causes are the export of non-processed minerals and sometimes lack of proper agreements with the mine owners or exploration companies. Of these subsidiary elements, rare earth elements (REEs) are of considerable importance. They are in relatively low concentrations of less than 0.1% and are seldom found in the form of deposits. So, their availability is subject to the processing of host metal only.

In a discussion with WealthPK about the economic value of mining by-products, Assistant Director Geological Survey of Pakistan (GSP) Yasir Shaheen Khalil said, “Subsidiary products found along with the principal elements/metals are sometimes too valuable. Sometimes, this type of low constituents is part and parcel of modern technology. Although they are used in considerably low quantities, they are important value additions. They impart some special properties to the products in which they are used.’’

Naturally, Yasir said, they are found with other host metals. For example, gold ore is associated with silver and platinum or at least one of them is found in its deposits. Sulphur, Rhenium, Selenium, Tellurium, molybdenum, and silver ore are sometimes by-products of porphyry copper, while Platinum Group Elements (PGEs) are mostly associated with Chromite ore. Manganese can be considered the frequent constituent of iron ore found in sedimentary rocks.

Yasir said the iron ore deposit in Chiniot is named as Iron Oxide Copper Gold (IOCG) deposit, which means copper and gold are also found there along with the iron ore. Oftentimes, silver and sometimes gold occurs as the minor constituent in copper, lead, or zinc ore. There are far more examples of this type, he added.

‘’The presence of REEs is considered a fortune for the miner, as they are high in demand in modern technologies from LED lights to spacecraft. They are such powerful natural elements that can bring exponential changes in considerably low quantities when processed with other metals. It can be said that they can make the physical properties of other metals a little better,” Yasir continued.

He said the government must review the clauses of mining agreements whether they were with the local miners or with international companies/individuals. This will help bring a revolutionary change in reaping handsome revenues for the country, he added. Secondly, the export of directly mined material must be banned in order to fully benefit from their monetary worth, he suggested.

Assistant Director Geological Survey of Pakistan (GSP) Naeem Ullah in a discussion with WealthPK about the question of why Pakistan is not getting proper value/product benefit from the mining of by-products said, “The country’s profit and income generation claim is limited to the benefits of principally mentioned elements, leases or some revenues i.e., taxes, etc. But the harvest of subsidiary elements is not clearly mentioned. Direct export of mineral ore without processing is another cause, while smuggling is another factor causing financial losses to the country.’’

He said the sale and purchase of mineral ore continue in the absence of awakening that sizable chunk of money could be generated from the subsidiary elements after processing. He said most of the miners in Pakistan were just exporting the precious minerals without knowing the economic value of their by-products. Naeem Ullah suggested that the local exporters and mine owners should be educated about the value of by-products.

‘’The associated minerals are mostly not found in viable quantities. Sometimes, traces of subsidiary elements are found and they are so minor as to be considered. Mostly, well-standard companies care for each and every detail. But still, there is a need to weave better laws. This will help invite foreign investors, partnering companies, and individuals to work in the mining sector of Pakistan for better profits,’’ Naeem Ullah said.

He said as a regular practice, the government does the partnership on an equal share basis but when the project is over or the mine exhausts, the machinery and all other establishments are left to the government department. The point to ponder is how to benefit from the valuable constituents, he added.

‘’As the constituents of REEs are expensive beyond imagination, in the absence of any clear agreement clause about the element custody or value, mostly we are deprived of the reap. There is a need to make our legal grounds and departmental control better to strengthen our mining industry,’’ Naeem Ullah said. In order to overcome the financial losses in the mining sector, it is important to install mineral processing units in the country, he said, adding that public-private partnerships and foreign investments could be engaged.

In small-scale mining, Naeem Ullah said, there is a need to bring awareness about the potential and economic value of each and every element found. Local miners/mining companies/extractors must be trained at the official level about value addition and value gains of their products, he suggested. ‘’Proper law-making will also increase the trust of foreign investors and they will consider the true potential of this sector. This will not only help earn handsome revenues for the country, but also bring prosperity to the people attached to the mining sector,’’ he said.

Credit: Independent News Pakistan-WealthPk